The MoneyMe Ltd (ASX: MME) share price plunged today despite the company reporting record financial results.
At the market close, the MoneyMe share price was down 8.54%, trading at $1.82.
MoneyMe is a digital consumer credit business that uses technology to help people manage their personal finances.
What did MoneyMe announce?
In today’s release, MoneyMe reported record originations of $170 million for the first two months of the second quarter (Q2 FY22). In the same time period, contracted future revenue increased to $158 million.
The company also reported better than expected take-up of its Autopay product.
Total gross customer receivables, which means sales made on credit for which payment has not been received, increased to $542 million. The company also noted that Autopay credit sales hit $111 million.
In addition, MoneyMe advised it has settled a $50 million drawdown announced in September through a partnership with Pacific Equity Partners.
Despite this, the MoneyMe share price fell sharply this morning and stayed down in what has been a bumpy day of trading across the broader ASX market.
For some perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) spent much of the day struggling in the red, before heading north to finish the day up 0.05% at 7245.1 points. Meanwhile, the S&P/ASX 200 Financials Index (ASX: XFJ) was down 0.03% at the close.
Management commentary
Commenting on the trading update, MoneyMe managing director Clayton Howes said:
I am delighted with MoneyMe’s accelerated growth, with the group achieving record originations and record revenues while maintaining strong credit performance.
We see this as a signal that our dynamic product, brand and service experience is paying off.
Moneyme share price snapshot
Despite today’s disappointing outcome, the MoneyMe share price has lifted 28.17% over the past 12 months. The yearly high is $2.48, while the 52-week low is $1.30.
Based on its current share price, MoneyMe has a market capitalisation of roughly $312 million.
The post Moneyme (ASX:MME) share price slides 9% despite record trading update appeared first on The Motley Fool Australia.
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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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